CNBC reported that recent security breaches at Target, Neiman Marcus and other retailers show the vulnerability of electronic payment methods to hackers. The report said there were more than 2,000 security incidents last year that exposed 822 million records.

One way of dealing with the security threat is transitioning to chip-and-pin cards, which have a computer chip embedded in the plastic. The cards have been used for years and help protect personal information.

Experts said they don't do much to prevent online fraud, but consumer advocates are pushing for fast adoption of the technology by U.S. banks and retailers.

Another concern with a cashless economy is that purchases made electronically are less private. Authorities may be able to more easily track illicit purchases, but that could mean monitoring all economic activity, turning everyone into a potential suspect and leading to greater mistrust of government.

Other experts said society may never go completely cash-free, but uses for cash may become more limited. Gifts, tips and religious contributions may continue to be given as cash.